Quarter of Japan firms fail ROE rule -proxy adviser ISS

April 17, 2015 9:37 AM

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TOKYO, April 17 (Reuters) - Proxy advisory firm Institutional Shareholder Services expects around a quarter of Japan's listed companies to miss its guideline of maintaining return on equity (ROE) of at least 5 percent, a sign the country's businesses still have some way to go in improving capital efficiency.

ISS, in its voting guidelines for 2015, recommends voting out top executives at companies with a five-year ROE average of less than 5 percent unless there are signs of improvement.